United Kingdom Pension Calculator
This calculator estimates your projected UK pension pot at retirement based on workplace contributions, the new State Pension, and the Annual and Lump Sum Allowances. Calculations apply HMRC pension tax relief rules, DWP auto-enrolment thresholds, and the State Pension rates effective from 6 April 2026.
Enter Your Details
Input your age, current pension pot, salary, and employer and employee contribution percentages.
Add Contributions
Include any voluntary contributions you plan to make.
Review the Breakdown
Results update automatically. The projection covers pot growth, the 25% tax-free lump sum, and State Pension income.
Project your UK pension pot
Auto-enrolment, AVCs and State Pension top-up
Annual snapshot
2026/27Your retirement snapshot
A plain-English summary of how the projection works. All figures are estimates based on the inputs above and current rules under HMRC, the Pensions Regulator, and DWP.
Year-by-year projection
Compound growth based on your salary, contribution rates, and assumed return less fees. Inflation-adjusted "today's money" column applies a 2.5% CPI assumption.
| Age | Pot (nominal) | Annual contrib | Growth | Pot (today's £) |
|---|
Where contributions go
Breakdown of this year's pension input by source, with tax relief shown separately. Higher-rate and additional-rate taxpayers can claim extra relief through Self Assessment.
PLSA Retirement Living Standards
Annual income needed (after tax, excluding rent or mortgage) for three retirement lifestyles, calculated by Loughborough University for the Pensions and Lifetime Savings Association — figures verified May 2026.
| Standard | One-person | Two-person | Pot needed (one-person) |
|---|---|---|---|
| Minimum Basics + 1 UK holiday, no car | £13,400 | £21,600 | ~£28,000 |
| Moderate Small car, 2-week European holiday | £31,700 | £43,900 | ~£410,000 |
| Comfortable 3-week holiday, kitchen replacements | £43,900 | £60,600 | ~£670,000 |
Adding voluntary contributions
See how an extra £100/month into AVCs or a SIPP changes the long-run picture. Higher-rate relief makes voluntary saving especially efficient above £50,270.
Auto-enrolment minimum
Including voluntary top-up
UK Pension Rates & Allowances
Auto-enrolment thresholds, State Pension rates, Annual Allowance, Lump Sum Allowance and tax-relief rules for the 2026/27 tax year — sourced from HMRC, DWP, MoneyHelper, and The Pensions Regulator.
Auto-Enrolment Minimums
Statutory minimums on qualifying earnings since 6 April 2019 — unchanged for 2026/27.
State Pension Ages
Currently 66, with legislated increases ahead.
Triple Lock Uplift
State Pension increase each April — the higher of three measures.
Auto-Enrolment Contribution Rules
All UK employers must enrol eligible workers into a qualifying workplace pension scheme. Minimum contributions apply to qualifying earnings — gross earnings between GBP 6,240 and GBP 50,270 in 2026/27 — though employers may choose more generous calculation methods.
Qualifying earnings band — minimum contributions
| Contribution | Rate | Notes |
|---|---|---|
| Employer (legal minimum) | 3.0% | Many employers contribute 5–10% as a competitive benefit |
| Employee (including basic-rate tax relief) | 5.0% | Net cost is 4% (relief at source) for basic-rate taxpayers |
| Total minimum | 8.0% | Of qualifying earnings only — not full salary |
Worker categories
| Category | Age & earnings | Treatment |
|---|---|---|
| Eligible jobholder | 22 to SPA, earning ≥ GBP 10,000 | Auto-enrolled — employer must enrol and contribute |
| Non-eligible jobholder | 16–74, earning GBP 6,240–10,000 or 16–21 / SPA–74 earning ≥ GBP 10,000 | Opt-in — entitled to employer contribution if they opt in |
| Entitled worker | 16–74, earning < GBP 6,240 | Voluntary join — no mandatory employer contribution |
Contribution base options
Employers can choose a different base than qualifying earnings (often more generous). The three certified bases are:
Common bases
- ▸Set 1 — Basic pay: contractual pay, often excludes overtime/bonus. Min 9% total (4% er, 5% ee).
- ▸Set 2 — Total earnings (≥85% basic): all earnings if basic pay ≥85% of total. Min 8%.
- ▸Set 3 — Total earnings: contributions on every pound. Min 7%.
Tax-relief methods
- ▸Relief at source: contributions deducted from net pay; provider claims 20% from HMRC.
- ▸Net pay arrangement: deducted before tax — relief is automatic at marginal rate.
- ▸Higher- and additional-rate taxpayers claim extra relief via Self Assessment.
UK State Pension
The State Pension is a regular government payment based on your National Insurance (NI) record. Two systems exist: the new State Pension for those reaching State Pension age (SPA) on or after 6 April 2016, and the basic State Pension for those who reached SPA before that date.
2026/27 weekly rates
| System | Weekly | Annual | Qualifying years |
|---|---|---|---|
| Full new State Pension | GBP 241.30 | GBP 12,548 | 35 NI years for full rate; min 10 years for any |
| Full basic State Pension | GBP 184.90 | GBP 9,615 | 30 NI years for full rate |
| Pension Credit (Standard Min Guarantee — single) | GBP 238.00 | GBP 12,376 | Means-tested top-up |
| Pension Credit (Standard Min Guarantee — couple) | GBP 363.25 | GBP 18,889 | Means-tested top-up |
State Pension age
| Born | State Pension age | Notes |
|---|---|---|
| 6 Oct 1954 – 5 Apr 1960 | 66 | Currently the standard SPA |
| 6 Apr 1960 – 5 Apr 1977 | 66 → 67 | Phased rise 2026–2028 |
| From 6 Apr 1977 | 68 | Phased rise 2044–2046; subject to periodic review |
Pension Allowances & Tax-Free Cash
The Lifetime Allowance was abolished on 6 April 2024. There is no longer a cap on the size of your pension fund — but tax-free cash is now controlled by the new Lump Sum Allowance and Lump Sum and Death Benefit Allowance.
Annual contribution limits (2026/27)
| Allowance | Limit | Trigger / scope |
|---|---|---|
| Annual Allowance (AA) | GBP 60,000 | Total pension input per year — employer + employee + tax relief |
| Money Purchase Annual Allowance | GBP 10,000 | Replaces AA for DC contributions once flexibly accessed pension income |
| Tapered Annual Allowance | Min GBP 10,000 | Reduces by GBP 1 for every GBP 2 of adjusted income above GBP 260,000 |
| Carry-forward window | 3 years | Unused AA from the 3 previous tax years can be carried forward |
Tax-free cash limits (lifetime)
| Allowance | Limit | Applies to |
|---|---|---|
| Lump Sum Allowance (LSA) | GBP 268,275 | Lifetime cap on tax-free cash (PCLS, small pot, trivial commutation lump sums) |
| Lump Sum & Death Benefit Allowance (LSDBA) | GBP 1,073,100 | Combined cap on tax-free lump sums plus tax-free death benefits before 75 |
| Overseas Transfer Allowance (OTA) | GBP 1,073,100 | Lifetime cap on transfers to a Qualifying Recognised Overseas Pension Scheme (QROPS) |
| Tax-free cash per pension | 25% | Up to the LSA cap. Above LSA, lump sums taxed at marginal rate |
Income tax bands (2026/27)
| Band | Threshold (GBP) | Rate | Tax relief on contributions |
|---|---|---|---|
| Personal Allowance | 0 – 12,570 | 0% | Relief at source provides 20% boost regardless |
| Basic rate | 12,571 – 50,270 | 20% | Automatic at source |
| Higher rate | 50,271 – 125,140 | 40% | Extra 20% claimed via Self Assessment |
| Additional rate | Above 125,140 | 45% | Extra 25% claimed via Self Assessment |
UK Pension Calculation Formulas
How pension figures are derived from the official rates above.
Used for auto-enrolment minimum contributions.
Earnings below LEL (GBP 6,240) and above UEL (GBP 50,270) excluded from minimum calculation.
Combined employer + employee contributions.
Must not exceed Annual Allowance (GBP 60,000), or carry-forward applies.
Effective relief on employee + AVCs at marginal rate.
Basic rate (20%) is automatic. Higher (40%) and additional (45%) claimed via Self Assessment.
Partial new State Pension for fewer than 35 NI years.
Minimum 10 NI years required for any State Pension. Voluntary Class 3 contributions can fill gaps.
Compound growth less fund charges.
r = expected return, f = fund charges. Workplace charge cap is 0.75%.
25% of pension up to the Lump Sum Allowance.
Lifetime cap across all pensions. Excess is taxed at marginal income tax rate.
Key Dates & Recent Changes
| Date | Change | Impact |
|---|---|---|
| 6 April 2026 | State Pension uplift 4.8% under triple lock | Full new SP rises to GBP 241.30/week (GBP 12,548/year) |
| 6 April 2024 | Lifetime Allowance abolished | Replaced by LSA (GBP 268,275) and LSDBA (GBP 1,073,100) |
| 6 April 2023 | Annual Allowance raised to GBP 60,000 | From GBP 40,000 — MPAA also raised to GBP 10,000 |
| 6 April 2027 | Pensions within scope of Inheritance Tax | Most unused pension funds and death benefits become IHT-relevant |
| 6 April 2028 | Pension access age rises to 57 | Normal Minimum Pension Age (NMPA) up from 55 to 57 |
| 2026–2028 | State Pension age phased rise to 67 | Affects those born 6 April 1960 – 5 April 1977 |
UK Pension Figures at a Glance
State Pension rates, auto-enrolment thresholds, contribution allowances, and PLSA Retirement Living Standards for the 2026/27 tax year — sourced from gov.uk, HMRC, DWP, and the Pensions and Lifetime Savings Association.
UK pension figures over time
2020 – 2026/27Auto-enrolment contribution split
PLSA RLS — pot needed (one-person)
UK pension types at a glance
2026/27 figures| Pension type | How it works | Tax relief | Access age |
|---|---|---|---|
State Pension | Government payment based on NI record. Full new SP needs 35 qualifying years; 10 minimum | N/A | 66 (rising to 67) |
Workplace DC pension | Auto-enrolment minimum 8% of qualifying earnings (3% employer + 5% employee). Pot grows with investments | At marginal rate | 55 (→57 in 2028) |
Defined Benefit pension | Promised income based on salary and service years. Increasingly rare outside public sector | At marginal rate | Scheme-specific |
SIPP / Personal pension | Self-managed pension. Full investment control. Counts toward GBP 60,000 Annual Allowance | At marginal rate | 55 (→57 in 2028) |
UK Pension News & Policy Updates
Latest gov.uk, HMRC, DWP, and Pensions Regulator policy changes — including 2026/27 State Pension uprating, the Pension Schemes Act 2026, dashboards connection deadline, and forthcoming changes to NMPA, IHT and allowances.
State Pension rises 4.8% under triple lock
From 6 April 2026, the full new State Pension rises to GBP 241.30 per week (GBP 12,548 per year) — up from GBP 230.25 in 2025/26. The 4.8% uplift was driven by Average Weekly Earnings growth (May–July 2025), the highest of the three triple-lock measures.
2026/27 weekly rates
- Full new State Pension: GBP 241.30/week = GBP 12,548/year (+ GBP 575/year)
- Full basic State Pension: GBP 184.90/week = GBP 9,615/year (+ GBP 439/year)
- Pension Credit (single): GBP 238.00/week Standard Minimum Guarantee
- Pension Credit (couple): GBP 363.25/week Standard Minimum Guarantee
Triple-lock measures applied
CPI inflation 3.8% (Sep 2025), AWE growth 4.8% (May–Jul 2025), 2.5% floor. Earnings growth was the highest, so 4.8% was applied.
Personal Allowance gap narrows
The full new State Pension (GBP 12,548) now sits just GBP 22 below the frozen Personal Allowance (GBP 12,570). Pensioners with any additional income will likely face income tax.
Pension Schemes Act 2026 receives Royal Assent
The Pension Schemes Act 2026 received Royal Assent on 29 April 2026 after extended parliamentary debate. The Act introduces wide-ranging reforms across DB and DC pensions covering around GBP 2 trillion in retirement savings, with phased implementation over the next several years.
Key measures
- Small pots consolidation: automatic merging of small DC pots when workers move jobs, to reduce admin charges
- Value for Money framework: mandatory red/amber/green assessment of DC scheme performance
- "Megafunds": route for multi-employer DC schemes worth GBP 25 billion+ to drive down fees
- Default retirement income solutions: trustees of DC schemes must offer at least one default decumulation pathway
- DB surplus rules: easier release of well-funded DB scheme surpluses to employers and members
What members will see
Most changes operate at scheme level, not directly on members. The phased rollout means some provisions take effect immediately while others depend on secondary legislation expected through 2027–2030.
Estimated saver benefit
The DWP estimates the reforms could benefit an average worker by up to GBP 29,000 over a working lifetime through lower fees and better-pooled investments.
Auto-enrolment thresholds held flat for 2026/27
DWP has confirmed the auto-enrolment earnings thresholds are unchanged for 2026/27: trigger GBP 10,000, lower earnings limit GBP 6,240, upper earnings limit GBP 50,270. The decision keeps the qualifying earnings band stable while wage growth gradually increases pension saving in absolute terms.
2026/27 thresholds (unchanged)
- Earnings trigger: GBP 10,000/year — minimum earnings to be auto-enrolled (eligible jobholder)
- Lower Earnings Limit (LEL): GBP 6,240/year
- Upper Earnings Limit (UEL): GBP 50,270/year
- Qualifying earnings band: GBP 6,240 – GBP 50,270 (max GBP 44,030 contributable)
- Minimum contribution: 8% (3% employer + 5% employee, including basic-rate tax relief) — unchanged since April 2019
Impact
DWP estimates total private-sector pension saving will rise to around GBP 91 billion in 2026/27 (up from GBP 89 billion), driven entirely by earnings growth within the same threshold band.
Eligibility
Workers aged 22 to State Pension age earning at least GBP 10,000/year must be auto-enrolled. Those earning GBP 6,240–10,000 can opt in and receive a mandatory employer contribution.
Pension funds to come within scope of Inheritance Tax
From 6 April 2027, most unused pension funds and pension death benefits will fall within the scope of Inheritance Tax. This is one of the largest changes to UK pension tax treatment in a decade, materially affecting estate planning for higher-value pension holders.
What changes from 6 April 2027
- Most unused pension funds at death will be added to the IHT estate (currently outside)
- Pension death benefits paid as lump sums will generally be IHT-relevant
- Death-in-service lump sums remain excluded from IHT
- IHT threshold: GBP 325,000 nil-rate band, plus GBP 175,000 residence nil-rate band where eligible
- IHT rate: 40% on the value above the threshold
Income tax on death benefits
Existing income-tax rules continue to apply alongside the new IHT scope. Death before age 75: lump sum tax-free within LSDBA (GBP 1,073,100). Death after 75: taxed at the beneficiary's marginal rate.
Planning window
Roughly 12 months remain before the rule takes effect. Pension holders considering estate-planning steps may wish to review with an FCA-regulated adviser well before the April 2027 deadline.
Pensions dashboards connection deadline approaches
All UK pension schemes and providers in scope must connect to the pensions dashboards ecosystem by 31 October 2026. The MoneyHelper Pensions Dashboard is being progressively rolled out, allowing savers to see all their pensions — including the State Pension — in one place for the first time.
Connection timetable (TPR / DWP)
- April 2025: First master trusts with 20,000+ members began connecting
- Throughout 2025: Staged guidance deadlines for schemes with 1,000+ members
- 2026: Smaller schemes connect; final deadline 31 October 2026
- Penalties for non-connection: up to GBP 5,000 per individual trustee, GBP 50,000 per corporate trustee
- MoneyHelper Pensions Dashboard: low-volume testing underway; public launch follows
What savers will see
Once connected, dashboards display each scheme's accrued pension and estimated retirement income. The State Pension is included alongside private and workplace pensions, giving a single retirement-income view.
Why it matters
An estimated GBP 31 billion in lost UK pension pots could be reunited with savers via dashboards, according to the Pensions Policy Institute.
Pension access age rises to 57 — HMRC publishes transitional plan
The Normal Minimum Pension Age (NMPA) rises from 55 to 57 on 6 April 2028. HMRC's Pension Schemes Newsletter 180 sets out provisional transitional rules so members who have already become entitled to access their pension at 55 can continue without disruption.
Key transitional points
- From 6 April 2028: general access age is 57 (currently 55)
- Protected pension age: existing scheme rules giving rights to access at 55 (or earlier) before 4 November 2021 are protected for those members
- Members already drawing pension: seamless continuation — no need to wait until 57
- State Pension age: separately rising 66 → 67 between 2026–2028
Who is affected
Anyone reaching 55 on or after 6 April 2028 will need to wait until age 57 to access most defined contribution and SIPP funds. Those born before 6 April 1973 are not affected — they can still access at 55.
Plan ahead
Final regulations are expected during 2026–2027. Anyone born after 6 April 1971 should review retirement plans assuming an access age of 57, including any bridging income from age 55 to 57.
2025/26 State Pension increased by 4.1%
From 6 April 2025, the full new State Pension rose to GBP 230.25 per week (GBP 11,973 per year), a 4.1% increase under the triple lock — driven by AWE growth (May–July 2024). The full basic State Pension rose to GBP 176.45 per week.
2025/26 weekly rates
- Full new State Pension: GBP 230.25/week = GBP 11,973/year
- Full basic State Pension: GBP 176.45/week = GBP 9,175/year
- Triple lock applied: 4.1% (highest of CPI 1.7%, AWE 4.1%, floor 2.5%)
- Increase per pensioner (full new SP): ~GBP 470/year
Personal Allowance pressure
The 2025/26 full new State Pension (GBP 11,973) sat GBP 597 below the frozen Personal Allowance of GBP 12,570 — a margin that has since narrowed to GBP 22 in 2026/27.
Triple lock cost
Treasury cost of the 2025/26 triple-lock uplift was approximately GBP 6 billion, reflecting the growing political and fiscal weight of the policy.
Pension Schemes Bill introduced to Parliament
The Pension Schemes Bill was introduced to the House of Commons on 5 June 2025, beginning a near-year-long parliamentary process that ended with Royal Assent in April 2026. DWP's accompanying Pensions Roadmap set a phased implementation plan running to 2030 for DC schemes and 2028 for DB schemes.
Bill scope on introduction
- Small pots consolidation: reducing admin overhead from fragmented DC pots
- Value for Money framework: requiring DC schemes to demonstrate fees-vs-performance value
- DC scale requirements: minimum size and consolidation incentives
- DB surplus distribution: easier release of surpluses to employers and members
- Default retirement income: mandatory default decumulation pathways
Parliamentary "ping-pong"
The Bill went through extended back-and-forth between the House of Commons and the House of Lords (Dec 2025 – Apr 2026) over investment mandation powers, eventually agreed in narrower form.
Roadmap milestones
Implementation runs in phases through 2026–2030. Most provisions require secondary legislation with consultations expected throughout 2026 and 2027.
Autumn Budget 2024 confirmed pensions in IHT scope from April 2027
The Autumn Budget 2024 confirmed that from 6 April 2027, most unused pension funds and pension death benefits will be included in the value of an estate for Inheritance Tax. Detailed implementation rules were consulted on through 2025, and the change has shifted estate-planning conversations across the industry.
Treasury rationale
- Closing a tax-planning route: pensions had become a vehicle to pass wealth IHT-free, beyond their original retirement-income purpose
- Estimated revenue: approximately GBP 1.46 billion/year by 2029/30 (HM Treasury)
- Affected estates: roughly 8% of UK estates, mainly higher-value
- Excluded: death-in-service lump sums and dependants' pensions remain outside IHT
Industry response
Pension providers and IFAs have flagged complications around joint estate planning, residence nil-rate band tapering, and the interaction with existing income-tax treatment of pension death benefits.
Implementation
Final HMRC technical guidance is expected in late 2026, ahead of the 6 April 2027 effective date. Providers will need to adapt death-benefit administration processes accordingly.
PLSA Retirement Living Standards 2025 update
The PLSA published its 2025 update to the Retirement Living Standards on 3 June 2025. The Minimum lifestyle cost fell GBP 1,000 to GBP 13,400/year for a one-person household due to lower energy costs — the first decrease since the standards launched. Moderate and Comfortable rose modestly with inflation.
2025 figures (after tax, excluding rent / mortgage, outside London)
- Minimum: 1-person GBP 13,400 / 2-person GBP 21,600
- Moderate: 1-person GBP 31,700 / 2-person GBP 43,900
- Comfortable: 1-person GBP 43,900 / 2-person GBP 60,600
- Terminology change: "single" / "couple" replaced by "one-person" / "two-person" households
- London uplift: typically GBP 1,300–3,200/year higher than outside-London figures
Pot estimates
Indicative one-person pot ranges (level annuity, full new SP): Minimum GBP 20,000–35,000; Moderate GBP 330,000–490,000; Comfortable GBP 540,000–800,000.
State Pension coverage
A two-person household with two full new State Pensions (combined GBP 23,946 in 2025/26) can now fully cover the Minimum standard without any private pension savings.
UK Pensions — Frequently Asked Questions
State Pension, auto-enrolment, allowances, tax-free cash, and access — verified against gov.uk, HMRC, DWP, MoneyHelper, and the Pensions Regulator (May 2026).
Important Disclaimer
For educational and informational purposes only. This calculator produces estimates based on the inputs provided and current UK pension rules for the 2026/27 tax year. The full new State Pension is GBP 241.30 per week (GBP 12,548 per year) from 6 April 2026. Auto-enrolment minimum contributions are 8% of qualifying earnings (3% employer + 5% employee), with a qualifying earnings band of GBP 6,240 to GBP 50,270 and an earnings trigger of GBP 10,000. The Annual Allowance is GBP 60,000, the Money Purchase Annual Allowance is GBP 10,000, the Lump Sum Allowance is GBP 268,275, and the Lump Sum and Death Benefit Allowance is GBP 1,073,100. The Lifetime Allowance was abolished from 6 April 2024. The Normal Minimum Pension Age is 55, rising to 57 from 6 April 2028. State Pension age is currently 66, rising to 67 between 2026 and 2028. From 6 April 2027, most unused pension funds and pension death benefits will fall within scope of Inheritance Tax.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (HMRC, DWP, MoneyHelper, The Pensions Regulator, gov.uk), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Pension allowances, contribution thresholds, State Pension rates, and tax-free cash limits are reviewed and revised periodically by the UK government — figures shown may be out of date. Individual circumstances, contracted-out service, lifetime allowance protections, tapered annual allowance, salary sacrifice arrangements, and self-employed status not captured by the inputs may materially affect actual pension outcomes. Investment growth assumptions are illustrative only — past performance does not guarantee future returns and the value of investments can fall as well as rise.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, tax, or retirement-planning advice, and use of this calculator does not create an advisory relationship. Before acting on any figure shown, obtain personal advice from an FCA-regulated financial adviser, refer to MoneyHelper for free impartial guidance, or check your State Pension forecast and HMRC pension records at gov.uk for authoritative figures.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with HMRC, DWP, and their pension provider before relying on them. Use of this calculator is subject to our Terms of Use.
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